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Tuesday, 1 January, 2019 -
Tuesday, 15 January, 2019

Vistra India Update - 367

INCOME TAX

1. Income tax deduction from salaries

CBDT has issued circular on deduction of income tax from salaries for FY 18-19. Such circulars are issued by CBDT each year to guide the employer and employees to understand various provisions of Income Tax Act 1961, relating to deduction of income tax from salaries.

Ministry of Corporate Affairs (MCA) has issued the Companies (Amendment) Ordinance, 2019 to give continued effect to the provisions of the Companies (Amendment) Ordinance, 2018. The Companies (Amendment) Ordinance, 2018 was signed by the President on the 2nd day of November, 2018, effective from the same date. Accordingly the Companies (Amendment) Ordinance, 2018 will cease to operate on the 21st January, 2019, as an ordinance, once issued, is valid for six weeks from the date when the next session of Parliament starts, during this period, Parliament can either pass the ordinance turning it into an Act or disapprove the ordinance. According to Article 123 of the Constitution of India, an ordinance shall cease to operate at the expiration of six weeks from the reassembly of Parliament, unless it is passed by the Parliament as law before that. Since the Companies (Amendment) Ordinance, 2018 could not be taken up for consideration and passing in the Council of States, accordingly it is considered necessary to give continued effect to the provisions of the Companies (Amendment) Ordinance, 2018 and hence MCA has issued Companies (Amendment) Ordinance, 2019

3. Publishing of rate of exchange for conversion of the foreign currency.

The Central Board of Excise and Customs (CBEC) vide Notification No. 02/2019 - Customs (N.T.) notified the rate of exchange for conversion of the foreign currency into Indian currency or vice versa for Export and Import of goods, with effect from 4th of January 2019 respectively.